QUALCOMM, Inc. (QCOM): This Company Looks Stagnant But Is Still Going Strong

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However, NVIDIA Corporation (NASDAQ:NVDA)’s attempt to speed up the launch of Tegra 4i delayed the launch of Tegra 4, which forced the company to continue with Tegra 3, a comparatively outdated product compared to its competitors. The delay cost the company a number of design wins too. Further, Tegra 4i does not offer any great hardware upgrades from the Tegra 3, which might cost the company heavily, as in the tech sector, innovation is the key to success.

On the other hand, Broadcom Corporation (NASDAQ:BRCM)’s chip form an integral part in both Samsung and Apple’s devices, which provides certainty to its future revenue. Further, it is continuously putting tremendous efforts to form partnerships with local carriers and handset makers in emerging markets, especially China. There is no doubt on the potential that China offers, and going forward Broadcom Corporation (NASDAQ:BRCM) is expected to be benefited from its operations there.

What about 5G?

Broadcom is the first company to initiate a 5G WiFi combo chip for smartphones, tablets, and other mobile devices. The company is bidding on the 802.11ac standard for every chief WiFi product segment. The 5G technology offers significant increases in WiFi coverage and transfer speeds, with considerably less power consumption, which enhances the efficiency to about six times the current levels. Entry into 5G market should work in Broadcom’s advantage in the long-run, making it a good bet.

Final words

With a short term view if we see Qualcomm’s performance year to date, its stock price has remained almost flat, but it has provided opportunities to gain from stock price volatility. Even after it reported its last earnings, its share fell over 10% in two days despite strong performance by the company, which I believe was a good buying opportunity keeping in view the growth that QUALCOMM, Inc. (NASDAQ:QCOM) offers in the long-term.

If the stock continues to be volatile and plunge post earnings consider it to be buying opportunity with a target of $65. Til then, inventors enjoy the hike in dividend and cash returned in the form of share repurchases.

The article This Company Looks Stagnant But Is Still Going Strong originally appeared on Fool.com and is written by tarun bachhawat.

tarun bachhawat has no position in any stocks mentioned. The Motley Fool recommends NVIDIA. The Motley Fool owns shares of Qualcomm. tarun is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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